ESKOM RURAL ELECTRIFICATION EXPERIENCES - LESSONS LEARNT - Presentation to UPDEA Workshop in Durban I. Sokopo

CONTENTS Strategic Approach Institutional and Funding Arrangements Commitment From Government Social Interventions Technical Interventions Process Institutional and Funding Arrangements Public Private Partnerships Achievements to date Electrification Success: Cumulative Cost Per Connection Way Forward Lessons Learnt Conclusion

COMMITMENT BY GOVERNMENT 1990-1993 Eskom performed 380 000 connections 1994 - Target set by Government for 1,75m by year 2000. 2001 to date - 3,3 million households electrified Connection every 30 seconds, pole every 10 seconds, 200m cable every minute. 1000 projects - 200 simultaneously each year.

SOCIAL INTERVENTIONS Critical to ensure success of any program Existing structures not necessarily recognised by communities. Electrification Committees set up Transfer of skills crucial

TECHNICAL INTERVENTIONS Tackled in four areas. Realistic load requirements 3kVA - 0,4kVA Type of supply single or three phase Utilisation of equipment Poles, transformers, indicators used Revenue management and metering Prepayment

PROCESS Change from reactive to proactive target driven approach Process had to be put in place Lead time of 18 months Centrally controlled. Rolling plan reviewed every three months very dynamic environment.

INSTITUTIONAL AND FUNDING ARRANGEMENTS UP TO 2000 Funded by Eskom, flexibility, ability to meet targets, up front planning 2000 TO PRESENT Funded By Government Stringent processes to follow No certainty on future cash availability Situation is improving Numbers have dropped [Energy White Paper] FUTURE – CONFIDENT OF LIAISON WITH GOVERNMENT TO ENSURE DELIVERY

PUBLIC PRIVATE PARTNERSHIPS USED FOR NON – GRID PV SYSTEMS EXPENSIVE TO CUSTOMER R100 connection fee compared to R0 R60 per month compared to usage R9/kWh compared to R0.5/kWh ELECTRIFICATION NOT PROFITABLE EVEN WITH LIMITED SUBSIDIES

ACHIEVEMENT TO DATE By end 1999 Eskom electrified 1,750,750 households - bulk in rural areas. 12% in 1994 to 46% at end 1999. Achieved cost per connection reduction by over 50% in real terms. Approximately 6000 PV systems 8 500 schools and clinics

ELECTRIFICATION SUCCESS CUMULATIVE CONNECTIONS

WAY FORWARD

LESSONS LEARNT Need Vision From Government Need Supply Chain Up front planning Pre – engineering Funding for 132 kV networks Need Technology, Standards, Process Public Private Partnerships have limited success due to profit requirement

CONCLUSION Need to always learn from mistakes Need to have strict control from a Central office with a clearly defined target and process Sound Stakeholder management throughout the process